The main objectives of the Industrial Policy, following the years 1990, are as follows:
(a) To maintain a sustained growth in productivity and gainful employment and attain international competitiveness.
(b) Self reliance so as to pay our import bills through our own foreign exchange earnings and developing indigenous capacity in technology and manufacturing.
(c) Pursue sound policy framework technology, dismantling of the regulatory system.
(d) Development of capital markets.
(e) Spread of industrialization to backward areas through appropriate incentives, institutions and infrastructure investments. 138’Indian Polity and Governance
(f) Encourage foreign investment and technology collaboration.
(g) Abolish monopoly of any sector or any individual enterprise in any field of manufacture except on strategic considerations and open all manufacturing activity to competition.
(h) Protect the interests of labour, enhance their welfare and equip them to deal with technology change. The Industrial Policy Resolutions of 1948, 1956 Industrial Policy Statements of 1973, 1977, 1980, though have become history, may be, briefly, referred to here: Industrial Policy Resolution, 1948’The policy had aimed at outlining the approach to industrial growth & development. It gave importance to the economy of securing a continuous increase in production and ensuring its equitable distribution.
Industrial Policy Resolution, 1956’Under the policy, the role of State was given more importance as an engine for accelerating the economic growth and speeding up industrialization as a means of achieving a socialist pattern of society. Industrial Policy Statement, 1973’The thrust of this policy statement was an identification of high-priority industries where investment from large industrial houses and foreign companies were permitted. Industrial Policy Statement, 1977′
The policy emphasized on decentralization and growth of small scale industries. Industrial Policy Statement, 1980’The policy envisaged promoting competition in domestic market, technology upgradation and modernization. It laid the foundation for an increasingly competitive export based system and for encouraging foreign investment in high-technology areas. The industrial strategy, since 1991, has been to make the state oversee and supervise the industrial growth, allowing the private initiatives to perform a more active and significant role. As a result, the number of factories from 1,12,286 during 1991 92 increased to 1,58,877 during 2009-10; number of workers increased from 62.7 lakhs during 1991-92 to 91.6 lakhs during 2009-10; value output from ` 2,99,196 cores during 1991-92 to ` 37,33,036 crores during 2009-10; profit from ` 9,635 cores during 1991-92 to ` 3,32,931 crores during 2009- 10.
These figures pertain to organized manufacturing sector. Inflows of FDI during 2011 was $ 32 billion while outflows of FDI increased from $13.2 billion in 2010 to $ 14.8 billion in 2011.
The BJP led NDA government (2014) lays emphasis on:
- increase industrial productivity;
- increase in foreign direct investment so to create more jobs and assets generation;
- check inflation;
- ease business enterprises, particularly, individual and private;
- restore dwindling investor confidence: ‘a red-carpet invitation’ for investors;
- rationalization of restrictive labour;
- propagate India’s market opportunities: ‘Make in India’ campaign;
- simplify business rules and regulations and create favourable business conditions;
